THE DISMAL SCIENCE Pouting Pundits of Pessimism Every bit of good economic news gives them reason for despair http://www.opinionjournal.com/editorial/feature.html?id=110007622
On 12/5/05, Gruss Gott wrote: > > A fiscal conservative attempts to see the risks and hedge against > them. Conservatives prefer to control all variables and therefore opt > for a reliable lower return rather than a higher unpredictable one. > > That makes the conservative position this: > > There's a lot of people up to their eyeballs in debt - both in and out > of the housing market. The country as a whole relies on $4 Billion of > debt per day just to operate. Oil is unpredictable for many factors > including terrorism and speaking of terrorism another strike in > America could cause who-knows-what. AND the markets have just > delivered an inverted yield curve which, historically, delivers a > recession. > > Therefore, a conservative says, this is not the time to be taking on > further risks such as debt and deficit spending. Now is the time to > batten down the hatches. > > You, on the other hand, take the liberal position: "Don't worry about > it. I run with scissors every day and I've never fell." > > Who's right? Who knows. My goal, though, is to make sure that if I'm > right, 'm ready. But, for a balanced look at the inverted yield curve > meaning read this: > > http://www.thestreet.com/_googlen/mutualfundmonday/mutualfundmondaygg/10255617.html > > "As Tony Crescenzi, chief bond market strategist at Miller Tabak and > RealMoney.com contributor, points out, every inverted yield curve > since 1970 has been followed by a period in which S&P 500 earnings > growth was negative, and has almost always preceded either an economic > slowdown or a recession." > > > (For what it's worth I agree with this guy: > http://www.smartmoney.com/commonsense/index.cfm?story=20051129 ) > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Discover CFTicket - The leading ColdFusion Help Desk and Trouble Ticket application http://www.houseoffusion.com/banners/view.cfm?bannerid=48 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:186026 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
